Needham analyst John Todaro has maintained their neutral stance on IREN stock, giving a Hold rating on October 25.
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John Todaro has given his Hold rating due to a combination of factors surrounding IREN’s recent developments. The significant contract with Microsoft, valued at $9.7 billion over five years, positions IREN prominently in the cloud sector, alongside notable players like CoreWeave and Nebius. This deal is expected to drive substantial revenue and EBITDA growth, with projections of approximately $1.94 billion in revenue and $1.6 billion in adjusted EBITDA annually at full capacity.
Despite these positive prospects, the substantial capital expenditure required, estimated at $8.8 billion, including $5.8 billion for GPUs and $3 billion for data center infrastructure, presents a considerable financial commitment. While the contract alleviates concerns about IREN’s ability to secure major cloud capacity deals, the financial implications and phased revenue realization through 2026 suggest a cautious approach, justifying the Hold rating.
In another report released on October 25, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $68.00 price target.